Ever since I knew about liquidity mining, I had wanted to try it out but didn't have enough of free funds to do so. Liquidity mining is referring to the process of depositing or you lending designated token assets with a mining mechanism and to provide liquidity for the product's fund pool and thus obtain an income. There are many topics on this that you can read on if you want to know more.
Pool by Cake now has offer me a chance to try and test out how liquidity mining works. I have some additional balance for BTC but did not have any DFI. To get some DFI, I turned off the Auto-Compound of my staking returns for a some hours so that my DFI rewards will not be stake back. As per the screenshot below, the APY for BTC-DFI Liquidity Mining is 166.46%. Deposit your favorite coins into shared liquidity mining pools and mine popular coin pairs for high rewards and minimal fuss. If you prefer, you can choose DOGE-DFI, ETH-DFI or USDT-DFI which has higher APY. I don't have those coins so I stick with BTC for now.
This is what I have input for this LM pair. Based on the amount I could afford, I will only receive 0.0000838 shares. My first rewards will only received after 12 to 24 hours on those amounts. It is not much and I might not even see any rewards. As per the FAQ, if my share amount is very small so rewards are less than the lowest unit (e.g. 1 Satoshi), they are not able to pay me any rewards. For now, I will keep it like this until I will be able to add more BTC in.
Please also note that there is a possibility of impermanent loss happens when you provide liquidity to a liquidity pool. This is due to the price of your deposited assets changes compared to when you deposited them. I'm no crypto expect but there is a Youtube video on this topic that you can listen and get more understanding of it.
If you want to try, you can sign up Pool by Cake but remember that you need to make ONE SINGLE DEPOSIT of $50 worth of crypto to earn their sign up bonus of $20+$10 worth of DFI.
